In present day merchandising operations wherein electronic cash registers or data terminal devices are utilized to calculate the amount due and paid, a copy of the transaction in the form of a printed receipt is produced and given to the customer. Prior mechanisms which have been used for cutting the receipt include perforating a row of holes across the receipt or incorporating a knife member pivoted at one edge of the strip of receipt paper and actuated to cut across the strip, thereby severing the printed receipt from the strip. These mechanisms have been found to have inherent defects which detract against their use. In the case of perforating a line of holes across the receipt, large amounts of paper dust are created which tend to settle within the various mechanisms of the terminal device, thereby causing mis-operation of the mechanism. In the case of the pivoted knife mechanism, it has been found that the mechanism requires frequent adjustments to provide the proper shearing action of the blade so as to insure a good cut of the receipt strip. It is therefore an object of this invention to provide a paper strip cutting mechanism for use in a data terminal device which is positive in its cutting action and reliable in its operation. It is a further object of this invention to provide a paper strip cutting mechanism which is simple in its construction and therefore low in cost.